Chevron Navigates Volatility with Commodity Derivatives

Chevron's commodity derivatives turned a $3.1 billion loss into a gain of $368 million in one quarter due to 'heightened volatility' during the Iran war.

The company submitted an SEC filing on Thursday, revealing that its commodity derivatives had trended upward after recording a significant loss in the previous quarter.

Chevron disclosed that it had posted $870 million in margin calls as cash collateral in its first quarter, which dropped to $139 million by June 30. This marked a cash recovery that came as oil prices dropped from their highs in March.

The company's net income rose to $12.1 billion in the latest quarter, driven by increased production volumes and the Iran war, which sent commodity prices higher.